Stallion India Fluorochemicals recently made its premium listing debut on the NSE and BSE, closing at its upper circuit of ₹126 and ₹125.99, respectively. The shares were listed at ₹120, a 33% premium over the IPO price of ₹90, contrary to the GMP expectations of 35-40% premium. The market cap stood at ₹999.50 crore as per NSE data.
Wealth Head at Swastika Investmart Ltd, Shivani Nyati, suggested IPO participants to book partial profits and hold with a stoploss of ₹105. Prashanth Tapse, Senior VP (Research) at Mehta Equities, advised non-allotted investors to wait and observe the short-term volatility post-listing. He mentioned that the company was fairly priced based on annualized earnings and had potential for healthy growth due to industry tailwinds and scalability.
Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, also expressed optimism about the company’s prospects for business improvement based on industry trends and scalability. However, Research Analyst at Samco Securities, T Manish, urged investors to exercise caution and wait for the right entry point, as the 33% premium listing might not be sustainable in the near term.
Stallion India Fluorochemicals specializes in the sale of refrigerants and industrial gases across various industries. A significant portion of its revenue comes from R-32 refrigerant gases, sourced from suppliers and marketed under the “Stallion” brand. The company has no export exposure to the US, which shields its net realizations from recent price hikes in the US.
The IPO, oversubscribed 188.38 times, consisted of a fresh issue of 1.78 crore equity shares and an offer-for-sale component of 43.02 lakh shares by promoter Shazad Sheriar Rustomji. The raised funds were allocated towards working capital requirements, capital expenditure for proposed facilities in Maharashtra and Andhra Pradesh, and general corporate purposes.
Sarthi Capital Advisors acted as the sole book running lead manager, with Bigshare Services serving as the registrar to the issue. In conclusion, analysts and experts are cautiously optimistic about the future prospects of Stallion India Fluorochemicals, urging investors to stay informed and vigilant in their investment decisions.
